IN THE MATTER OF THE

APPLICATION FOR THE

APPROVAL OF AUTOMATIC
ADJUSTMENT AND TRUE-
UP MECHANISMS AND
CORRESPONDING
CONFIRMATION PROCESS
.PURSUANT TO ERC
RESOLUTION NO. 16,
SERIES OF 2009 AS
AMENDED BY
RESOLUTION NO. 21,
SERIES OF 2010 AND ERC
RESOLUTION NO. 23,
SERIES OF 2010

ERC CASE NO. 2014-013 CF

PAMPANGA I ELECTRIC
, COOPERATIVE, INC.

I (PELCOI),
Applicant.
x-------------------.--x
DO tlfuH lpl
Dat.:.C~.nT.-.-.rr.
By~~.-_ w.'. __

I
~-
DECISION
!
, Before this Commission for resolution is the Application filed by
,
t
Pampanga I Electric Cooperative, Inc. (PELCO I) on 25 March 2014
i
for the approval of automatic cost adjustments and true -up
;
mechanisms and corresponding confirmation process pursuant to the
j Commission's Resolution No. 16, Series of 2009, as amended by
Resolution No. 21, Series of 2010 and Resolution No. 23, Series of.
I 2010.

I FACTS

I On 25 March 2014, PELCO I filed the instant Application. In the

said Application, PELCO I alleged the following:

1. It is an electric cooperative duly organized and existing

under and by virtue of the laws of the Republic of the
I
ERC Case No. 2014-013 CF
I Decision/29 March 2016
Page 2 of 19

Philippines, with principal office at Sto. Domingo, Mexico,

Pampanga, where it may be served with summons and other
legal processes, represented in this instance by its General
Manager, Engr. LoHano E. AlIas, of legal age, Filipino, and
with office address also at PELCO I Office;

2. It is the exclusive franchise holder issued by the National

Electrification Administration (NEA), to operate an electric
light and power services in the Municipalities of Pampanga,
namely: Arayat, Cand8:ba, Magalang, Mexico, San Luis, and
Sta. Ana;

3. Pursuant to ERe Resolution No. 16 Series of 2009, as

amended by ERC Resolntion No. 21 Series of 2010 and ERC
Resolution No. 23 Series of 2010, more specifically Article 5,
Section 1 (filing) thereof, all Luzon Distribution Utilities
(DUs) shall file their respective consolidated applications, on
or before March 31, 2014, for the over/under recoveries on
their'implementation of various automatic cost adjustment
and true-up mechanisms;

4. For purpose of compliance with the said Resolution No. 21,

as amended and Resolution No. 23, it adopted the formulae
on Generation Rate, Transmission Rate, System Loss Rate,
Lifeline Subsidy/Discount Rate and Senior Citizen
,, Subsidy/Discount Rate, together with the specific definitions
and sub-formulae for each item thereof;

5. It hereby snbmits its proposed application for approval of

automatic cost adjustment and true-up mechanisms and
corresponding confirmation process pursuant to the
aforesaid resolution, as amended, as well as the attached
computation and actual calculations, duly marked as Annex
"A" and form as part and parcel of the instant application;

6. In snpport of its application, it attached the following

required documents contained in the guidelines issued by
the Commission, to wit:

a. Power Supply DataSheet;

b. Statistical Data Sheet;

c. Implemented Rates Data Sheet;

d. Power Bills & Official Receipts of Payment issued by

Power Supplier;

e. NGCP Invoices and Official Receipts of Payment

issned by NGCP;

f. Monthly Financial and Statistical Report MFSR;

 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page 3 oft9

g. Monthly/Quarterly VAT Declaration and Official

Receipts of Payment;

h. Consumer Bills of Lifeliners (per level) and Non-

Lifeliners per Customer Class;

1. Computation of Generation Over/Under Recovery;

j. Computation of Transmission Over/Under Recovery;

k. Computation of System Loss Over/Under Recovery;

I. Computation of Lifeline Subsidy Over/Under

Recovery;

m. Computation of Senior Citizen Over/Under Recovery;

and

n. Summary of Pilferage Cost Recoveries;

7. The summary of Actual Revenue vis-a-vis Allowed Cost

Recoveries and (Over)jUnder Recoveries for Generation,
Transmission, System Loss, Lifeline, and the Senior Citizen
Subsidy Rate are as follows:

Actual Revenue Allowed Cost (Over)/ Under

(Php) Recoveries Recoveries
(Ph) Ph
Generation 2, 8,1086 2, 888 1280,1 8

Transmission
Residential 28118,6 1 2 , , 2 ( 1212 )
LowVolta e 108 0 11121 162 2,688 12
Hi h Volta e , 0 , a 280 (16 10

S tern Loss 2 6 ,6 26 ,1 00 ( , 1 ,6 0)

Lifeline Subsid 2 ,6 2, 16 2 ,26 0 ( 7, 26)

Senior Citizen 16 ,66 16000 ( 6

I Total 18 28 1 1 81 (6 6 )
iI

I 8. It prays that the Commission, after due notice and hearing,

approve its application and upon approval thereof, it be

I, directed to submit the scheme on how to implement the said

approval.

I Having found PELCO I's Application to be sufficient in form

and substance, with the required fees having been paid, the
Commission issued an Order and Notice of Public Hearing both dated
08 May 2014 setting the case for initial hearing on 03 June 2014.
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page4of19

During the 03 June 2014 hearing, only PELCO I appeared.

There was no intervenor or oppositor who appeared. Neither was
there any intervention or opposition was filed.

During the said hearing, PELCO I filed its Proofs of Compliance

with the Commission's posting and publication requirements, which
were duly marked as Exhibits "A" to "F". Finding the submission
,
J
compliant with the jurisdictional requirements enumerated in the
Order dated 08 May 2014, the Commission declared that it acquired
jurisdiction over PELCO 1's Application.
I,
j Thereafter, the Expository Presentation commenced. PELCO I
presented Mr. Jayson M. De Leon (Mr. De Leon), Finance Services
Department Manager of PELCO I, who discussed the presentation
under oath. At the end of his presentation, the Commission
propounded clarificatory questions. Thereafter, the Commission
proceeded with the Pre-trial Conference and evidentiary presentation.
In the course of the pre-trial, the Commission, upon motion of .
PELCO t, issued an Order of General Default. Likewise, the
Commission adopted the Pre-trial Brief presented by PELCO I there
being no intervenor or oppositor in the said hearing.

During the presentation of evidence, PELCO I again presented

Mr. De Leon as its sole witness, who testified in support of the instant
Application. In the course of his direct examination, additional
documents were identified and duly marked as exhibits.

Upon termination of the presentation of evidence, the

Commission directed PELCO I to submit its Formal Offer of

I Evidence.

On 06 June 2014, PEtCO I filed before the Commission its

"Formal Offer of Evidence".

On 22 March 2016, the Commission issued an Order admitting

the exhibits contained in PELCO 1's Formal Offer of Evidence for
being relevant and material in the final resolution of this case.

ISSUE

The issue to be resolved in the instant case is whether the

Commission should approve PELCO 1's calculations of its (over) or
under recovery for the period January 2011 to December 2013.
ERC Case No. 2014-013 CF
Decision/29 March 2016
Pagesof19

DISCUSSION

The Commission approves with modification PELCO 1's

calculations of (over)/under recovery.

In its Application, PELCO I sought the approval of the

Commission ofthe following (over)/under recoveries:

Particulars Actual Revenue Allowed Cost (Over)/ Under

(Php) Recoveries Recoveries
(Ph) (Ph)
Generation 2,3 8,108,639 2 888 1,280,1 8

Transmission
Residential 28,118,6 1 324,99 ,3 2 ( ,121,2 9)
LowVolta e 108, 0 111,21 ,162 2,688 12
Hi h Volta e 44,503,90 280 (1,6 ,109)

S stem Loss 2 ,6 ,6

Lifeline Snbsid ( 26)

Senior Citizen 16 6 6 160,00 ( ,6 )

Total 1 8 28 1 1 81 (6 6 )

For over/under recoveries of distribution utilities, the pertinent

rules applicable are found in Resolution No. 16, Series of 2009', as
amended by Resolution No. 21, Series of 2010', and Resolution No.
23, Series of 20103 The same rules provide the formulae for
computing the following (over)/under recovery components, namely,
(1) Generation Rate; (2) Transmission Rate; (3) System Loss; (4)
Lifeline Subsidy; and (5) Senior Citizen Subsidy:

Generation Rate:

[(AGe - GRR )+ ,GOUR ]

GOUR =~~----~----~
,
s GaUR To",1

1 Entitled "A Resolution Adopting the Rules Governing the Automatic Cost Adjustment and True-
Up Mechanisms and Corresponding Confirmation Process for Distribution Utilities",
2 Entitled "A Resolution Amending Section 4 of Article 4 and Section 1 of Article 5 of the Rules
Governing the Automatic Cost Adjustment and True-Up Mechanisms and Corresponding
Confirmation Process for Distribution Utilities".
3 Entitled "A Resolution Adopting the Rules Implementing the Discounts to Qualified Senior
Citizen End-Users and Subsidy from the Subsidizing End-Users on Electricity Consumption
under Sections 4 and 5 of Republic Act No. 9994".
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page60f19

Where:

GOUR = Refers to over/under-recoveries in

generation costs during the recovery
period expressed in Peso/kWh

AGe = Total Allowable Generation Cost,

computed as follows:

AGC ~ L[((GC, +GC" + ...GCJ-50%(PPD, +PPD" + ...PPDn)-PCRr,mm JSGmmJ

L.m TPG GmiR

Transmission Rate:

For Customer classes with TR expressed in Peso/kWh:

TOUR, J(ATCN - TRRN )+rTOURN 1

j SroURN

Customer classes with TR expressed in Peso/kW and Customer

classes with TR expressed in both Peso/kWh and Peso/kW:

Where:

TOURN = Refers to over/under-recoveries in

transmission cost during the recovery
period expressed in PesofkWh for class
N

(
I = Refers to the actual transmISSIOn cost
< during the recovery period computed as
, follows:
j
j
ATC 2:[(TC - 50%PFDJS lrPN
N
=
L.rn TPG1'OUR
muR
r-
ERC Case No. 2014-013 CF
Decision/29 March 2016
Page70f19

System Loss:

SLOUR= [(ASLC- ASLR)+ rSLOUR]

SSWUR

Where:

SLOUR = Refers to over/under-recoveries in

system loss during the recovery period
expressed in Peso/kWh

ASLC = Allowable System Loss Cost incurred

during the recovery period determined
as follows:

ASLC = ASLCyt + ASLCr2 + ... ASLCr,

Where:

ASLC
VI.,
= ([GTGCr
TPG y
+ TCy-50%PFDy
TPG Y
]u)s Y

Lifeline Subsidy:

LD
LSOUR=----
SLSOURNI._TOW,

Where:

LSOUR = Refers to over/under-recoveries on

lifeline subsidy during the recovery
period expressed in Peso/kWh

LD = Difference between the Total Discounts

given to lifeline customers and Total
Subsidy collected from non-lifeline
customers, computed as follows:
 ERC Case No. 2014-013 CF
Decision/29 March 2016
PageS of 19

LD= L(TS-TD)
1.. m

Where:

TS = Lifeline subsidy amount collected from

non-lifeline customers for month 1to m,
computed as follows:

TS = SLSOUR"x LSR

Where:

8UOURNL = total kWh consumption of non-lifeline

customers for the month

LSR = lifeline subsidy rate per kWh collected

from non-lifeline customers for the
month

I
!
TD = total discount amount given to lifeline
customers for month 1 to m, computed

as follows:

to, = L[((SLSOUlhx TRate)+(NCushx FixedICust))xD]

)==1...11

Senior Citizen Subsidy:

SrDif's_D
SrDSOUR = ---"--
kWhSsrDsouRsEU
Where:

SrDSOU R = Refers to the over/under recoveries on

senior citizen discounts and subsidy
during the recovery period subject for
verification expressed in PhP/kWh

SrDiffs_D = Summation of the difference between

the total subsidy collected from all
subsidizing end-users and the total
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page90f19

discounts granted to senior cItIzen

end-users for each and every recovery
month within the period covered by the
verification process, computed as
follows:

SrDiffs_D = '\'(TS TD)

L.... SEUI - Sri
i...n

Where:

= Total amount of subsidy collected from

all subsidizing end-users for the
recovery month, computed as follows:

Where:

= Senior Citizen Subsidy Rate expressed in

Peso/kWh implemented or collected from
j
all subsidizing end-users for the recovery
I month
I kWhSSEU = Total kWh Sales to all subsidizing end-
users for the recovery month

= Total amount of discounts implemented

or granted to all qualified senior citizen
end-users for the recovery month,
computed as follows:

Where:

Total amount of discount implemented

or granted to all qualified residential
. senior citizens customer for the recovery
month

Total amount of discount implemented

or granted to all qualified senior citizen
centers and residential care
facilities/institutions or group homes for
the recovery month
 ERCCase No. 2014-013 CF
Decision/29 March 2016
Page 10 of19

In evaluating the instant Application, the Commission adopts

the following considerations:

A. Generation Cost

I PELCO I computed its generation cost based on its approved

contract with the Masinloc Power Partners Co., Ltd. (MPPCL)4 for
the period January 2011 to December 2013. In the evaluation thereof,
the Commission likewise used the same basis.

B. Transmission Cost

The transmission cost was computed using the invoices and

official receipts for the given period issued by the National Grid
Corporation of the Philippines (NGCP) to PELCO I. In the
evaluation thereof, the Commission likewise utilized the same
I documents.
!
C. Pilferage Cost Recoveries
I

,
1
I The pilferage recoveries were deducted in the computation of its
generation cost in compliance with the Implementing Rules and
Regulations (IRR) of Republic Act No. 7832, otherwise known as the
''Anti-electricity and Electric Transmission Lines/Materials
Pilferage Act of 1994".

D. kWh Purchased and Generated

The kWh Purchased and Generated was based on the invoices

issued by MPPCL to PELCO I. In the evaluation thereof, the
Commission likewise utilized the same documents.

E. kWh Sales

In determining the total kWh Sales, PELCO I used the kWh

Sales of the previous months. On the other hand, the Commission
used the actual kWh of the current month in the confirmation
process.

4 As provisionally approved by the Commission through an Order dated 17 August 2009 in ERe
Case No. 2oo9-o52RC, entitled, "In the Matter of the Application for Approval of the Contract for
the Supply of Electric Energy Between Pampanga I Electric Cooperative, Inc. and Masinloc Power
Partners Company, Limited, With Prayer for Provisional Authority,"
ERC Case No. 2014-013 CF
Decision/29 March 2016
Page 11 of19

F. System Loss

In the computation for the annual system loss cost, PELCO I

based the same on its actual system loss for the 12-months moving, or
the cap of 13%, whichever is lower. On the other hand, the
Commission based the same on the actual annual system loss or the
cap of 13%,whichever is lower for a given period.

G. Company Use

Consistent with the Commission's policy under Resolution No.

11, Series of 2010, entitled "Resolution Clarifying the Policy on the
Treatment of kWh Company Use by Distribution Utilities", the
monthly company usage was treated as a regular sales to be
integrated in the actual current month kWh Sales. For PELCO I,
Company Use was included in its kWh sale in years 2011 to 2013. The
Commission likewise adopts the same basis.

H. Lifeline and Senior Citizen Subsidy

In computing the Lifeline subsidy and Senior Citizen subsidy,

PELCO I used the previous month data. On the other hand, the
Commission used the current month data pursuant Resolution No.
16, Series of 20095, as amended by Resolution No. 21, Series of 20106
and Resolution No. 23, Series of 20107

Below is a summary of the comparison made between the basis

used by PELCO I and the Commission:

Commission's
Particulars PELCOI's Basis
Basis
l. Generation Generation cost IS Same basis as used
based on the approved byPELC01.
contract with the
MPPCL for the period
January 2011 to
December 2013.
2. Transmission Transmission cost is Same documents as
based on National Grid used by PELCO 1.
Corporation of the

s See supra note l.

6 See Supra note 2.
7 See Supra note 3.
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page 120f19

I Philippines (NGCP)
!i mVOIces and official
receipts for a gIVen
period January 2011 to
December 201~.
3. Discounts:

Prompt Availed Performance & Same basis as used

Payment Payment Security byPELCOI.
Discount Discounts from
j (PPD); and January 2011 to
, December 2013.

Performance PELCO I deducted 50%

and Payment of the availed
Security Discounts from
Discounts MPPCL in computing
the allowable
generation cost.
4. Pilferage Cost Pilferage recoveries Same basis as used
Recoveries were applied to reduce byPELCO I.
I the generation cost
subiect of recoverY.
5. kWh Purchased kWh purchased from Same basis as used
and Generated MPPCL as presented in byPELCOI.
its invoices.
6. kWh Sales Total kWh sales of the Total kWh sales of
I nrevious month. the current month.
7. System Loss Actual system loss for Actual annual
the 12-months moving, system loss, or the
or the cap of 13%, cap of 13%,
whichever is lower. whichever is lower
for the period.
8. Company Use PELCO I included the Same basis as used
Company Use in the byPELCOI.
kWh sales in years 2011
UP to 2013.
9. Lifeline Subsidy Computed monthly Computed monthly
usmg the previous usmg the current
month data. month data
pursuant
Resolution No. 16,
Series of 20098, as
amended bv

I
t 8 See supra note 1.

I
I
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page 13 Of19

Resolution No. 21,

Series of 20109 and
Resolution No. 23,
. , Series of 2010'0 .
10. Sr. Citizen Computed monthly Computed monthly
Subsidy usmg the previous using the current
month data. month data
pursuant
Resolution No. 16,
Series of 2009", as
amended by
Resolution No. 21,
Series of 2010" and
. Resolution No. 23,
t,
Series of 2010".
t
I The monthly
I, variance in the kWh
Sales of both the
I
subsidizing and the
subsidized
customers resulted
to an over recovery.

I. PELCO I's Previous Compliance Filing

Pursuant to Article 4 of Resolution No. 16, Series of 2009'4, as

amended by Resolution No. 21, Series of 2010'5 and Resolution No.
23, Series of 2010'6, the total running balance of the refund/collection
as a result of any previous confirmation should be included in
determining the new cost adjustment. Thus, in its evaluation, the
Commission considered its decision in PELCO 1's previous
compliance filing in ERC Case No. 2011-020 CF'7.

9 See Supra note 2.

10 See Supra note 3.
11 See supra note 1.
'2 See Supra note 2.
13 See Supra note 3.
14 See supra note l.
15 See Supra note 2.
'6 See Supra note 3.
ly Entitled: "In the Matter of the Application for Approval of (Over)/ Under recoveries based on
the Formulae on the various Automatic Cost adjustments and True-up Mechanisms and
Corresponding Confirmation Process, Pursuant to ERe Resolution no. 16, Series of 2009 and
Resolution No. 21, Series of 2010."
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page 14 of 19

In the said decision, the Commission confirmed PELCO 1's has

an (over) recovery of PhP(101,273,207.85) for the period August
2006 to December 2010. The Commission noted that PELCO I
started implementing the said decision in its February 2014 billing
period. As of December 2015, PELCO I has an outstanding balance of
PhP(44,515,208.62), to wit:

Outstanding Balance as of
Particulars September 2015
(PhP)
Generation 2,01 ,509.22
Transmission (2 1 .)
S tern Loss (1 ,618,68 .1 )
Lifeline Subsid ( ,28. 1)

I Senior Citizen Subsid

ICeS
o
1,0 0,6 . 9
i TOTAL ( 4,515 208.62)

I Following the above-cited resolutions, the Commission

I included the outstanding balance of PhP(44,515,208.62)

arriving at the new cost adjustment.
in

In the instant Application, PELCO I sought the Commission's

confirmation of its total (over) recovery of PhP(6,763,547.00).
After a careful scrutiny and evaluation of the Applicant's submissions
as well as the considerations enumerated above, the Commission
finds that PELCO I has an (over) recovery of PhP(9,492,320.58),
as follows:

PELCO I's Proposed Commission's

(Over)jUnder (Over)jUnder
Particulars Recoveries
Recoveries
(PhP) (PhP)
Generation 12801 8.00 1,0 1 2,10
, Transmission (2,1 6,6 6.00 (,6 ,1 1.26)
I S stem Loss ( , 1 ,6 0.00) ( ,116,6 3.39)
i Lifeline Subsid ( 26.00) (62 ,80 .6 )
I Senior Citizen Subsid (,6 .00) (163 60. )
TOTAL (6, 63 .00) (9492 20. 8)

In view of the foregoing substantial disparity between the (over)

recovery claimed and the (over) recovery determined under the
Commission's standards, PELCO I is reminded to be more
circumspect in the preparation of its applications submitted before
the Commission. PELCO I is expected at all times to exude fair
dealing, which includes careful preparation of information embodied
I
in its application or petition before this Commission.
I

I
j
 ERC Case No. 2014-013 CF
Decisionj29 March 2016
Page 15 of 19

Taking into account the confirmed (over) recoveries in the

instant Application and the outstanding balance of PELCO I from the
previous confirmation, the Commission approves the following new
cost adjustments:

Particulars Current Outstanding New Cost

Recoveries Balance Adjustment
(PhP) (PhP) (Php)
Generation 1,93,132.10 2,015,59;22 3,108,64h32
Transmission (4,675,191.26) (32,415,397.33) (37,090,588.59)
System Loss (5,116,693.39) (14,618,684.19) (19,735,377.58)
Lifeline Snbsidy (629,807.64) (547,289.7" (1,177,097.35)
Senior Citizen (163,760.39) 0.00 (163,760.39)
I, ICeS 0.00 1,050,653.39 1,050,653.39
t TOTAL (9,492,320.58) (44,5"5,208.62) (54,007,529.20)

Based on PELCO I's December 2015 annualized data on kWh

sales of 17,893,779 kWh, presented below is the matrix of cost
adjustments with their corresponding (over)junder recoveries to be
(refunded)jrecovered from its customers for the period specified:

No. of Current (Over) I Under Recoveries

Particulars
Months PhP/kW
PhP PhP/kWh
Generation 36 3,108,641.32 0.0048

Transmission 36 (37,090,588.59)
Residential (25,293,169.53) (0.0583)
Low Voltage (8,749.209.59) (0.0592)
Higher Voltage (3.048,209-47) (2.7368)
System Loss 36 ('9,735,377.58) (0.0306)
Lifeline Subsidy* 36 (1,177,097.35) (0.0019)
Senior Citizen Subsidy*"" .2 (.63,760.39) (0.0587)
Inter Class Cross Subsidy 1,050,653.39 0,0097

*Ljfeline subsidy kWh sales is based on the total kWh sales excluding kWh sales oflifeline customers
**Senior Citizen Subsidy kWh sales is based on total kWh sales excluding kWh sales of residential senior
citizen customers.

WHEREFORE, the foregoing premises considered, the

Application filed by Pampanga I Electric Cooperative, Inc. (PELCO I)
for the approval of automatic cost adjustments and true-up
mechanisms and corresponding confirmation process pursuant to the
Commission's Resolution No. 16, Series of 2009, as amended by
Resolution No. 21, Series of 2010 and Resolution No. 23, Series of
2010, is hereby APPROVED WITH MODIFICATION.

f
 ERC Case No. 2014-013 CF
Decisionj29 March 2016
Page 16 of 19

ACCORDINGLY, PELCO I is hereby directed to REFUND

the following amounts starting on the next billing cycle from receipt
hereof:

1. TRANSMISSION COST (over) recoveries amounting to

PhP(37,090,588.59), equivalent to the refund rates per
customer class over the period of 36 months, to wit:

Customer Class PhP/kWh PhP/KW

Residential (0.0583)
Low Voltage (0.0592)
Higher Voltage (2.7368)

2. SYSTEM LOSS (over) recovenes amounting to

PhP(19,735,377.58) or an equivalent refund rate of
PhP(0.0306)jkWh over the period of 36 months, or until
such time that the full amount shall have been refunded.

3. LIFELINE (over) recovenes amounting to

PhP(1,177,097.35) or an equivalent refund rate of
PhP(0.0019)jkWh over the period of 36 months, or until
such time that said amount shall have been fully
refunded.

4. SENIOR CITIZEN SUBSIDY (over) recoveries

amounting to PhP(163,760.39) or an equivalent refund
rate of PhP(0.0587)jkWh over the period of 12 months,
or until such time that said amount shall have been fully
refunded.

On the other hand, PELCO I is hereby directed to COLLECT

the following amounts starting on the next billing cycle from receipt
hereof:

"
1. GENERATION COST under recoveries amounting to
PhP3,108,641.32 or equivalent collect rate of

I
j
PhPo.0048jkWh over the period of 36 months, or until
such time that the said amount shall have been fully
collected.

2. INTER CLASS CROSS SUBSIDY under recoveries

amounting to PhP1,050,653.39 or an equivalent collect

 ERC Case No. 2014-013 CF

Decision/29 March 2016
Page 17 Of19

rate of PhPo.0097/kWh, or until such time that said

amount shall have been fully collected.

In connection therewith, PELCO I is hereby directed to comply

with the following:

a) SUBMIT within ten (10) days from its implementation, a

sworn statement indicating its compliance with the
aforesaid directives;

b) REFLECT the (over)/under recoveries in the monthly

computations of GR, TR, SLR, LSR and SrSR as "OGA"
for Generation,. "OTCA" for Transmission, "OSLA" for
System Loss, "OLRA" for Lifeline Subsidy and "OSrRA"
for Senior Citizen Subsidy; and

c) ACCOMPLISH and SUBMIT a report in accordance

with the attached prescribed format, on or before 30th day
of the following month, together with the monthly
reportorial requirements, and every month thereafter
until the amount shall have been fully refunded/collected.

Finally, PELCO I is directed to strictly comply with the

foregoing directives.and immediately implement the same in the next
billing cycle upon receipt hereof.

SO ORDERED.

Pasig City, 29 March 2016.

J~SE Vlm-NTE iLs-r .

Chairman and CEO
..,.
ERe
'S-2017-017-0C-00292'
'-~------_.
tER~
J
!!lililii~lil~lm~ijiiiil!ii!lillj~ij

(on leave)
ALFREDO J. NON
0, ... e~~
(fl./
GL6'-itiA\rrCTO~. ~AP-TARUC
Commissioner ommlsswner

!
k
JO,SEFINAPAT . MAGPALE-ASIRIT RONIMO D. STA. ANA
Commissioner
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page 18 Of19

Copy Furnished:

1. ATTY.ARNIDO O. INUMERABLE
Counselfor PELCO I
405 Elisa St.UE Village, Cainta, Rizal

2. PAMPANGA I ELECTRIC COOPERATIVE, INC. (PELCO I)

St~. Domingo, Mexico, Pampanga

I 3. The Office of the Solicitor General

I "34 Amorsolo Street, Legaspi Village, Makati City
i Metro Manila
I

4. The Commission on Audit

Don Mariano Marcos Avenue
Diliman, Quezon City, Metro Manila

5. The Senate Committee on Energy

Senate of the Philippines
GSIS Bnilding, Roxas Blvd., Pasay City, Metro Manila

6. The House Committee on Energy

House of Representatives
Batasan Hills, Quezon City, Metro Manila

7. Office ofthe President ofPCCI

Philippine Chamber of Commerce and Industry (PCCI)
3,d Floor, Chamber and Industry Plaza (ClP)
1030 Campus Avenue corner Park Avenue
McKinley Town Center, Fort Bonifacio, Taguig City

8. Office of the Provincial Governor

Province of Pampanga

9. Office ofthe Municipal Mayor

Arayat, Pampanga

10. Office ofthe Muuicipal Mayor

Candaba,Parnpanga

11. Office of the Muuicipal Mayor

Magalang, Pampanga

12. Office ofthe Municipal Mayor

Mexico, Pampanga

13. Office ofthe Muuicipal Mayor

San Luis, Pampanga

"4. Office of the Municipal Mayor

Sta. Ana, Pampanga

15. Office ofthe Sangguniang Panlalawigan

Province of Pampanga
 ERC Case No. 2014-013 CF
Decision/29 March 2016
Page 19 of 19

16. Office ofthe Sangguniang Bayan

Araya!, Pampanga

17. Office of the Sanggnniang Bayan

Candaba,Parnpanga

18. Office ofthe Sangguniang Bayan

Magalang, Pampanga

19. Office ofthe Sangguniang Bayan

Mexico, Pampanga

20. Office of the Sangguniang Bayan

San Luis, Pampanga

21. Office ofthe Sanggnniang Bayan

Sta. Ana, Pampanga

22. Investigation and Enforcement Division (lED)

Energy Regulatory Commission
I1h Floor, Pacific Center, San Miguel Avenue, Pasig City

j
II

I
I
;
 Other Generation Rate Adjustment (OGA) Charge

Name of DU: This report should be submitted on or before the 30th

ERC Case No.:
of the following month, together with the monthly
Order Date:
Total Amount to be reportorial requirement, and every month thereafter
Collected: until the amount shall have been fully recovered.
Rate per kWh (PhP/kWh):

Other Generation Rate Adjustment (OGA) Charge

Amount Collected/Refund
For the Period Covering _

Month Rate/kWh kWh Soldl Amount Collected Balance in Amount

Beginning Balance 0.00

Customer Class

1.

2.

3.

4.

5.
TOTAL
-Ending Balance 0.00
:/ In'dicate the kWh sold used in the calculation of collect.

Preparedby: Reviewed by: Certified True and Correct:

(Name & Position) Finance/BillingManager General Manager

OATH
SUBSCRIBEDAND SWORN to before me this day of ,201
The affiant exhibited to me his/her CTC No issued on ""
Notary Public
II
Other Transmission Cost Adjustment (OICA) Charge

Name of DU: This report should be submitted on or before the 30th

ERC Case No.: of the following month, together with the monthly
Order Date:
reportorial requirement, and every month thereafter
Total Amount to be
Collected: untillhe amount shall have been fully recovered.
Rate per kWh (PhP/kWh):

Other Transmission Cost Adjustment (OrCA) Charge

Amount Collected
For the Period Covering _

Month Rate/kWh kWh Sold1 Amount Collected Balance in Amount

Beginning Balance 0,00

Customer Class

1.

2.
3.
4.

5.
TOTAL
Ending Balance 0.00
> Indicate the kWh sold used m Ihe calculatIon of collect

Prepared by: Reviewed by: Certified True and Correct:

(Name & Position) Finance/Billing Man'ager General Manager

OATH
SUBSCRIBED AND SWORN to before me this day of 201 at _
The affiant exhibited to me his/her eTC No issued on " ~ _

Notary Public
 Other System Loss Cost Adjustment (OS LA) Charge

Name of DU: This report should be submitted on or before the 30th

ERC Case No.: of the following month, together with the' monthly
Order Date:
reportorial requirement, and every month thereafter
Total Amount to be
Collected: until the amount shall have been fully recovered.
Rate per kWh (PhP/kWh):

Other System Loss Cost Adjustment (OS LA) Charge

Amount Collected/Refund
For the Period Covering _

Month Rate/kWh .kWh Soldl Amount Collected Balance in Amount

Beginning Balance 0.00 .

Customer Class

1.

2.

3.
4. .
5.
TOTAL
Ending Balance 0.00
~!Indicate the kWh sold used in Ihe calculation of collecl.

Prepared by Reviewed by: Certified True and Correct:

(Name & Position) Finance/Billing Manager General Manager

OATH
SUBSCRIBED AND SWORN 10 before me this day of , 201 at _
The affiant exhibited 10 me hislher CTC No Issued on ,' _

Notary PubliC
 Other Lifeline Rate Cost Adjustment (OLRA) Charge

Name of DU: This report should be submitted on or before the 30th

ERC Case No.: of the following month, together with the monthly
Order Date:
Total Amount to be reportorial requirement, and every month thereafter
Collected: until the amount shall have been fully recovered.
Rate per kWh (PhP/kWh):

Other Lifeline Rate Cost Adjustment (OLRA) Charge

Amount Collected/Refund
For the Period Covering _

Month Rate/kWh kWh Sold1 Amount Collected Balance in Amount

Beginning' Balance 0.00

Customer Class .

1.
2.
. .

3.
4. .
5. .

tOTAL .
Ending Balance . 0.00
~/ Indicate the kWh sold used in the calculation of coliect.

Prepareq by: Reviewed by: Certified True and Correct:

(Name & Position) Fmance/Billing Manager General Manager

OATH
'SUBSCRIBED AND SWORN to before me this day of 201 al _
The affiant exhibited to me hislher CTC No. Issued on " _

Notary Public
 Senior Citizen Discount & Subsidy Over Under Recovery

Name of DU; This report should be submitted on or before the 30th

ERC Case No.:
of the following month, together with the monthly
Order Date:
f Total Amountto be reportorial requirement, and every month thereafter
Collected: until the amount shall have been fully recovered.
t Rate per kWh (PhP/kWh):

I
Senior Citizen Discount & Subsidy Over Under Recovery
Amount CollectedfRefund
For the Period Covering _

Month Rate/kWh kWh Soldl Amount Collected Balance in Amount

Beginning Balance 0.00

Customer Class

1.
2.
3.
4.
5.
TOTAL
Ending Balance 0.00
~I Indicate the kWh sold used in the calculalion of collect.

Prepared by Reviewed by: Certified True and Correct:

(Name & Position) Finance/Billing Manager General Manager

OATH
SUBSCRIBED AND SWORN to before me this day of 201 al _
The affiant exhibited to me his/her CTC No issued on ,I

Notary Public